Urban Compass Raises $40 Million

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July 28 (Bloomberg) -- Zillow agreed to purchase Trulia for $3.5 billion in an all-stock deal that is designed to make the combined entity the largest player in online real estate advertising. Urban Compass Founder and CEO Robert Reffkin speaks about the deal and his company’s growth on “In The Loop.” (Source: Bloomberg)

Ceo robert.

Great to see you this morning.

You have got big backers here, including your former employer, goldman sachs.

What is this merger?

You have got to does big guys getting even bigger.

What does that mean?

There is an arms race to bring technology into the real estate space.

Real estate is one of the last major segments of the economy without a lot of technology.

It is not as much being driven by customers as by investors.

There is a trade out there, one of the largest traditional brokerages.

As a result, their stock price has gone up over 90% year to date and the stock price has gone down almost 30%. you're saying that is really what is driving all of this.

That is my belief.

Every year that goes by, there will be more and more value added from technology companies while traditional brokerages will provide more or less the same as they did before.

Customers are in demand but you're saying customers are not really to many this kind of technology.

Customers are demanding but the push europe over the last year is from investors.

What is it about technology that will change the industry?

Our technology was built by my cofounder who sold the company at google and other companies at twitter and then who built the fastest computer in the world.

The kind of tools we are building for include a mobile app that has won for an and one for a customer that speak continuously to each other and that really creates -- you have got real-time data?

The vision of urban cop this is a real estate platform that powers a brokerage.

We are building a data research arm, all of the information that comes from our site and others and provides real insights that form decisions.

In the long term, we want to go beyond the transaction to connect people to the neighborhood and their cities.

This is what i think people are using these websites for.

Tell me how urban compass will answer these issues.

They go on truly a were zillow because they want to know how much their places worth.

They're looking for places, but they can find places.

The second thing they're looking for is, how do i get all of these that i keep getting, the fees, commission, six percent or eight percent, how do i take care of that?

How does technology answer that?

One thing the investors may get wrong is that agents are not door openers.

It is a sophisticated transaction.

It is the most important decision most people make in their lives.

Someone has to open the door and take a picture.

There is a difference between a good and great picture.

Someone has to advise on the contract.

Someone has to negotiate.

I do not believe knowledge will replace agents.

How does it differ then truly oh?

-- trulia?

We are powering agents, great agents with our innovative technology to help customers and create a partnership.

In what way?

Our listings of the most accurate database in new york city, one, and two, a mobile app for agents that give them in the palm of their hands -- when a customer want to see an apartment, they click to see the apartment and he goes to the most relevant agent with the most relevant experience with the highest customer satisfaction scores that are available right now to show the apartment.

We're proud of that, to work with agents asked for them.

What did you learn from banking on wall street that you're using for the real estate is it?

-- industry?

The process of advising on buying and selling a company is very similar to advising and selling a property.

The same structure of the presentation, the pitch deck, of selling profits, selling timeline, there are a lot of similarities there we are bringing to the states.

Thank you.

The founder and ceo of urban.

We will be back in a few moments with more on that fine and the charges levied.

We will be back.

?

This text has been automatically generated. It may not be 100% accurate.

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